Will cash in on weak rupee; FY14 to be best: Vardhman

Vardhman Textiles is upbeat about a good performance in FY14. SP Oswal, its chairman and MD feels that the weak rupee will add value to their competitive value going forward. The current fiscal (FY14) will be the best year for the company, he tells CNBC-TV18. The industry expects the rupee to range between 60-62/USD and benefit exports, he adds.  

Also read: Rupee fall to boost industry exports by 14-20%: Arvind Below is the edited transcript of his interview to CNBC-TV18. Q: You all get a significant portion of your revenues from export. Given the rupee depreciation, what could we expect from the company in FY14? How much of a benefit has the rupee been? A: Rupee depreciation definitely helps us to offset the increase in the cost that had taken place due to inflation in the past 2-3 years. It definitely will give value advantage in terms of not becoming uncompetitive. The entire industry looks forward to it remaining between 60-62/USD to benefit all including yarn and fabric export. On fabric side, definitely it has helped us a great deal where we were facing a far bigger challenge from China, Bangladesh and other markets where we are also exporting. In yarn, China is not our competitor; it is the fabric. The depreciation has a great deal in remaining competitive in Bangladesh which is a large importer of fabric and many other industries within fabric can take this advantage. Q: Would you say that this would be the best year for the industry? A: First six months in 2013-14 have gone well with us. Definitely, it is a much improved performance compared to 2012-13. The rupee has appreciated. It is better as the raw material cost, cotton in particular, which would have gone up otherwise, will remain stable. Therefore, mills will have an opportunity to buy cotton at relatively internationally compatible price. So 2013-14 definitely should be a better looking year compared to earlier years. 2010-11 was the best year for us using the last 10-year record.